The amendment provides for the revival of sick societies

The Union Cabinet on Thursday approved moving official amendments to the Multi-State Co-operative Societies (Amendment) Bill, 2010 which is pending in the Lok Sabha. Among other provisions, the amendments provide for revival of sick societies. The moving of official amendments ensures that the provisions of the Bill were in conformity with the provisions of the Constitution (97th Amendment) Act, 2011, the government said.

An amendment proposes that if the Central Registrar opines that a multi-State co-operative society has become sick, then it may declare such society as “sick”. The Centre or any person authorised by it shall prepare a scheme for the rehabilitation and reconstruction of such sick a society and the society shall place it before its general body for approval.

Rehabilitation and reconstruction

It is also proposed that where a scheme for rehabilitation and the reconstruction of a multi-State co-operative society has been prepared, the Centre may, on the recommendation of general body, re-organise the board of such persons having experience in the field of co-operative, management finance, accountancy and any other area relating to such societies as may be recommended by general body. The Multi-State Cooperative Societies (Amendment) Bill, 2010 was introduced in Lok Sabha on November 15, 2010. It seeks to further amend the provisions of the Multi-State Cooperative Societies Act, 2002 “to keep the legislation in tune with the changing economic policies and to facilitate the multi-state co-operative societies to take advantage of the new and emerging opportunities.”

Better accountability

These amendments will ensure better accountability of the management towards its members, official sources said.

The Bill was referred to the Committee on Agriculture which presented its report to the Lok Sabha last December. The Department of Agriculture and Cooperation has accepted the Committee’s recommendation and has accordingly, proposed to move the official amendments to the Multi-State Cooperative Societies (Amendment) Bill, 2010.